Effects Of The Financial Crisis Of Deutsche Bank 's Involvement

1783 WordsDec 13, 20168 Pages
7. Effects of the financial crisis Deutsche bank’s involvement with collateralized debt obligations and residential mortgage-backed securities contributed greatly to the housing bubble that burst in 2008 thus helping launch the great recession. Even though the residential mortgage-backed securities were only trading in the United States our local economy here is extremely influential all over the world because of globalization, and the interrelations of the world’s economy. The recession created here by the housing bubble bursting helped to create a global recession. 8. Regulation Most financial institutions do not hold themselves accountable. However, they do fall under the regulation of governing bodies. In the United States we have the US securities and exchange commission (SEC) that regulates trading of commodities and securities that are exchanged on an open market. In April 2010 the SEC proposed revisions to the application of asset-backed securities (CDO and RMBS). A few of the most important implementations are that the issuer is required to file on the SEC website a computer program that provides investors “with a tool to analyze information about specific loans within the pool of assets. This computer program would show the effect of the so-called “waterfall” so investors can analyze how the borrowers’ loan payments are distributed to investors in the ABS, how losses or lack of payment on those loans will be divided among the investors, and when administrative

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